Examlex
One element of situation-strength theory is clarity.It is defined as:
Financing Policies
These are strategies that a company formulates for managing its finances, including decisions on debt, equity, and internal financing methods.
Equity Multiplier
A financial leverage ratio that measures the portion of a company's assets that are financed by shareholders' equity.
Debt Ratio
The debt ratio measures a company's financial leverage, calculated by dividing total liabilities by its total assets.
Rational Self-Interest
The principle that individuals tend to make decisions that maximize their own utility or benefit, underpinning much of economic theory.
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